The Group relaunched under its new name during H1 17, signifying a new era.
Companies: Itaconix plc
Itaconix (LON: ITX), formerly Revolymer, has released its interims for the first half of FY17 which outline the transformation the Group has undergone both in its name and its operations.
From 1 March the Group was relaunched as a specialty chemicals group and the Company's name was changed to Itaconix, reflecting the use of bio-based itaconic acid in their polymers.
The Group signed deals with Croda, Akzonobel and RevCare this year, who operate in the consumer, commercial and industrial industries, reflecting the Group's move away from producing nicotine gum.
Financial highlights include Gross Profit up from £0.0m to £0.15m and Revenue from specialty chemicals of £0.3m also up from nil. Losses Before Tax remained flat at £2.5m.
Organisational and operational efficiencies implemented in the period are also expected to save the Group at least £1m per year.
Singers released a note today regarding the interims, which detailed their take on the future for the relaunched Group:
H2 is likely to see an increasing contribution from the Croda agreement as well as royalties commencing under the Solvay PAP licence... We do, though, adjust our original FY17 forecasts to reflect delays to certain milestones. FY17E revenue reduces from £1.4m to £0.7m with a corresponding change to FY18. Recent announcements suggest these are timing issues and significant medium term growth potential remains.
ITX was trading down around 10% this morning at c. 20p per share.
As the Group current and potential partners look to increase sustainability in their products, helped by using Itaconix's plant-based polymers, the Board "believes there is good reason" to remain positive about the outlook of the business.